Blogs

New Connecticut restrictions on AI use in employment decisions

8/6/26

By: Ryan Giggi

Effective October 1, 2027, Connecticut will require employers to disclose certain uses of artificial intelligence (AI) in employment-related decisions. Failure to comply may result in liability under the Connecticut Unfair Trade Practices Act (CUTPA).

Certain provisions of Public Act 26-15, signed into law by Governor Ned Lamont in 2026, require employers to disclose the use of AI in employment-related decisions to applicants and employees. The new law exempts AI use in decisions concerning “non-material” matters, such as scheduling and productivity monitoring, but applies to “employment-related decisions” such as hiring, termination, promotion, discipline, and other decisions concerning the terms, privileges, or conditions of employment. Covered technology includes “any technology that processes personal data and uses computation to generate any output, including, but not limited to, any prediction, recommendation, classification, ranking, score or other information, that is a substantial factor used to make or materially influence an employment-related decision.” In practical terms, employers should treat the law as applying whenever AI either makes an employment-related decision or materially influences one.

There are two general categories of AI use that require disclosure. First, when an applicant or employee directly interacts with an AI platform, the employer must provide a plain-language notice that the individual is interacting with AI, unless that fact would be obvious to a reasonable person. Second, when AI is used to contribute to an employment-related decision, the employer must provide written notice stating: (i) that automated employment-related decision technology will be used; (ii) the employment-related decision at issue and the purpose for which the technology will be used; (iii) the name of the AI platform; (iv) the categories of personal data the technology will consider and how that data will be assessed; (v) the sources of personal data to be used; and (vi) the employer’s contact information. AI platform developers and providers must also make available the information Connecticut employers need to prepare these notices.

Although the law does not create a private right of action for applicants or employees who believe they were treated discriminatorily by AI, it may affect future employment discrimination claims. The Act provides that an employer may not defend a claim under the Connecticut Fair Employment Practices Act by arguing that it relied on AI. The law also empowers the Connecticut Attorney General to bring enforcement actions under CUTPA for improper use of covered AI technology. Available remedies may include equitable relief and civil penalties of up to $5,000 per violation and up to $25,000 per violation of an injunction. For the period from October 1, 2027, through December 31, 2027, the Attorney General must first issue a notice of violation and allow the employer 60 days to cure before commencing an enforcement action; that cure period is not required beginning in 2028.

Connecticut employers should begin identifying covered AI tools and preparing required disclosures as soon as practicable to ensure compliance by the October 1, 2027 effective date.

If you have any questions or would like additional information, please contact Ryan Giggi at ryan.giggi@fmglaw.com or your local FMG attorney.

Information conveyed herein should not be construed as legal advice or represent any specific or binding policy or procedure of any organization. Information provided is for educational purposes only. These materials are written in a general format and not intended to be advice applicable to any specific circumstance. Legal opinions may vary when based on subtle factual distinctions. All rights reserved. No part of this presentation may be reproduced, published or posted without the written permission of Freeman Mathis & Gary, LLP.